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Brand Management Intro

Transcript of 1 Brand Mgmt Intro

STRATEGIC BRAND MANAGEMENTBUILDING, MEASURING, AND MANAGING BRAND EQUITYbyKevin Lane KellerWhat is a Brand? American Marketing Associations definition A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to diferentiate them from those of competitorsThese different components of a brand that identify and differentiate it are brand elements. Many practicing managers refer to a brand as more than that - as something that has actually created a certain amount of awareness, reputation, and goodwill

What is a Product?Brand versus Product Product is anything that can be ofered to a market for attention, acquisition, use or consumption that may satisfy a need or a want (goods, services, retail store, person, organization, ideas, etc!The 5 levels of a Product as defned by Philip Kotler 1. Core beneft level fundamental need or want that is satisfed. Gener!c "roduct level basic version attributes necessary for functionin !stripped down level"#. E$"ected "roduct level what customer#s normally e$pect %. Au&'ented "roduct level additional attributes% benefts that distinuish it from competition(. Potent!al "roduct level all transformation that it miht undero in the futureWhat is a Product?Brand versus Product Product &ierarchy by Kotler'1. Need )a'!l* core need that underlies the e$istence of the Product (amily. Product )a'!l* all product classes that can satisfy the same need with reasonable e)ectiveness#. Product class+ cate&or* ' roup of products within the family havin a certain functional coherence %. Product l!ne!di)erent brands * family brand * individual brand' roup ofproducts within the class havin a similar function% sold tosame consumer roups% from same outlets% at similar prices (. Product t*"e roup of items within a product line that share one or several forms of the product,. Ite' !stoc+ +eepin unit" within the brand or product line distinuishable by si,e% price% appearance% attributeWhat is a Brand?A Brand !s a Product with dimensions that di)erentiates it from other products desined to satisfy the same need !competition" The Diferences give the brand Equity and distinuishes it brand from a commodity D!-erences 'a* be .Rat!onal and tan&!ble related to product performance !-ony% .illette"/r * andS*'bol!c/ e'ot!onal/ !ntan&!ble related to what the brand represents ("oca "ola, #ee!Brand is a perceptual entity !it resides in consumer#s mind"0t is rooted in reality ' product% service% person% etc12reated by the (irm that provides the impetus 3ew 2oncept of Brand 45uity !B4"Brand E0u!t*$ the sum total of consumer perceptions and feelings about how a brand performsThe brand name and what it stands forThe company associated with the brand BE is defned di)erently but with points of consensusBE relates to Mar1et!n& E-ects t2at are un!0uel* attr!butable to t2e brand6i)erent outcomes result in the mar+etin of a product or service because of its brand name% as compared to the same product or service% if it did not have that brand nameBE conce"t !n 'ar1et!n& . stresses the importance of the brand in mar+etin strateies13ew 2oncept of Brand 45uityThere is also areement that Brandin is about creatin di)erences 6i)erences in outcome arise from 7added value# endowed on a product as a result of past mar+etin activities for the brand8alue for a brand can be created in many ways8alue can be e$ploited to beneft the frm in many di)erent ways B4 provides the common denominator for interpretin mar+etin strateies and assessin the value of the brandWhy Brands 9attersBrand 3alue translates !nto fnanc!al "rofts Brandin creates perceived di)erences Which develops a loyal consumer franchiseTherefore future sales and profts can be e$pected to followTherefore the brand !an intanible valued asset" needs to be handled carefullyWhy Brands MatterBrands matter to consumers because -Brands take on a speca! meann" and c#an"e t#e e$perence and percepton of a product that leads to "reater sats%acton Brands reduce perce&ed rs'sRe!atons#p bet(een brand and consumercreates a bond / pact of trust and loyaltyConsumers expect consistent product performance appropriate price distribution and other actionsMarketers can expect to be re!arded !ith loyaltyCustomers !ith past experience !earn more about the brandWhy Brands MatterTo Customers"ignal of #uality"ymbolic de$ice for self expression%t is a &romise Bond &act !ith maker of the productabout consistency of the offering'isk reducer"earch cost reducerMeans of identification of source of productfor assignment of responsibility to product makerTo ManufacturerMeans of identification for handling tracing"ignal of #uality le$el to satisfied customersCompetiti$e ad$antage (egal protection of uni#ue features)inancial return Benefts tothe Firm of Customer-Based Brand EquityBranding is a po!erful means of securing a competiti$e ad$antageBrand experience can last for years and cannot be duplicated4n:oy reater brand loyalty% usae% and a;nity and therefore9sCreates entry barriers for others?eceive reater trade cooperation and support0ncrease mar+etin communication e)ectiveness-upports brand e$tensions@ields licensin opportunitiesAnything Can Be BrandedBranding is possible for -B to B products*igh-tech products &roducts "er$icesCommodities atta salt+nline products and ser$ices'etailers and ,istributors&eople and +rgani-ations"portsArts .ntertainment/eographic location%deas and causesThe Concept of Customer-Based Brand Equity (CBBE) Custo'er.based brand e0u!t* is the ' %iferential efect of the brand&& which enerates a %iferential in "ustomer 'esponse to brand mar+etin